Kwame Kilpatrick on Trial: Day 58

Local 4 is inside the courtroom for the federal corruption trial of former Detroit Mayor Kwame Kilpatrick, Kilpatrick's dad Bernard Kilpatrick and his childhood friend Bobby Ferguson. Each day we bring you information from inside federal court as it happens.

Brrr!!!! It is one cold morning today. I was anticipating a long line and then realized it's not immigration day!

Bernard has been the main topic of testimony of the current witness, James Rosendall, a former executive with Synagro Technologies. John Shea, Bernard's lawyer, will wrap up his cross-examination this morning.

9:04AM Judge Nancy Edmunds enters the courtroom and calls for an immediate sidebar with counsel before the jurors enter the courtroom.

Jurors filter in and take a seat.

John Shea takes up his cross of Rosendall.

December 4th, 2007 meeting with Bernard and Akumma Olumba at the Pancake House. Shea wants to focus on the end of that meeting regarding a discussion on how things were in the county. Witness remembers that conversation- carving up deals with the county similar to carving up deals with Synagro.

Rosendall says he felt that when Bernard was part of the county he was involved in some deals with the county that were similar to the Synagro deal.

Playing a portion of conversation from December 4th 2007- expanded version of end of Pancake House meeting. Transcripts passed to jurors.

Can hear the din of the restaurant. Can hear Rosendall laughing.

Shea says there is discussion about Detroit City Council, Bernard says it was difficult to trust some City Council members' words when they told one something. Rosendall says he can't see that on the transcript.

Some snippets of conversation:

"Used to most people liking but not lying like this." Bernard about the council

"When you get up to Council, it's a whole different ballgame." More Bernard pearls of wisdom.

"Don't worry about a thing, I'm going to take care of you," what Bernard says Council would say and not to trust it.

More snippets:

Bernard about being Commissioner: "If you tell someone you're going to do something, do it." Shea says he is contracting what he did as Commissioner what he discussed with other Commissioners versus how City Council acts.

More recording:

Olumba overheard saying:" More money more power."

Shea says there is no mention on contracts. Rosendall says no mention of contracts just about carving stuff up.

Shea says that the agreement that Bernard had with Synagro was with Rayford Jackson. Correct says Rosendall.

Shea says you didn't view that agreement business.

"I didn't want to be a part of it," says Rosendall about the parceling of the agreement between Jackson and Bernard.

Shea says no one at Synagro said this is illegal about Jackson splitting with Bernard. Rosendall says they thought he had an agreement with Bernard and it was on him.

Rosendall says he had conversations with Pam Racey and Alvin Thomas, an executive and lawyer with Synagro respectively, about the legality of the Bernard and Jackson arrangement.

Shea questioning where recordings of these conversations are. Also, says you discussed more the morality. Rosendall agrees.

Shea says it was ethical matter of dealing with father of mayor on such a big contract. Yes says Synagro.

Synagro dealt with legal firm in Lansing to feel oput dealing with Bernard. "They felt it was a very grey area and their recommendation was to stay away from it," says Rosendall.

Shea says Rosendall pulled over by FBI in January 2008 and had been caught by wire taps on some illegal activity including bribes paid tyo City Council member to influence Synagro vote. Rosendall agrees with this.

9:25AM Bribery of a public official carries up to 10 years says Shea.

Rosendall says he doesn't know how many years but he did agree to cooperate with the FBI.

Shea days FBI told them about their investigation in the mayor and City Council. Rosendall says it's fair to say it was city government-wide.

Shea says you provided FBI information you testified to last week. Rosendall agrees.

In January 2009, Rosendall charged with conspiring to commit bribery which has a maximum of 5 years and not the 10 year sentence.

Shea says that the plea agreement includes an agreement that Rosendall would continue to cooperate with federal government. Rosendall says he can't remember. Shea hands him documents that seems to refresh his memory.

Shea says that you would have to give information about others.

Shea says that if the government felt you had given enough cooperation, they would recommend no more than 11 months. Shea says that the determination about cooperation is solely in the hands of the government. Yes says Rosendall.

In November 2009, Rosendall was sentenced to 11 months based on government's statement that he had given substantial cooperation. Shea saying that failure to continue testifying would have consequences that witness doesn't want to revisit. "that's a fair statement," says Rosendall.

Shea says if you didn't provide the truth to the government, that would be a separate federal crime. Shea also says if you didn't tell them the truth then there would be no incentive to tell the truth now. Rosendall agrees.

9:33AM US Attorney Michael Bullotta redirects.

Bullotta asks if he has already served him time. Rosendall says he has.

Rosendall says the agreement between Jackson and Bernard was uncomfortable for Synagro. He says he felt dragged into it by BK and Akunna and he was just trying to keep the deal going forward. Rosendall say he felt that Bernard could hold up the permits.

Rosendall says Amru Meah, head of Building and Safety, could hold up permits.

Bullotta asking about the $300 in the parking lot that Rosendall gave Bernard for Christmas gifts.

Looking for summary of deposits to Maestro accounts. In December 2007, 6 days before parking lot meeting on December 14t5h there was a $7,500 deposit and 2 weeks before that there was a $5,000 and that on December 21st there was a $25,000 deposit into his account from Kilpatrick for Mayor. Bullotta asks if that would have affected him feeling sorry for Bernard. "Absolutely," says Rosendall.

Reading transcript of conversation between Rosendall and Jackson that Shea introduced in his cross Friday. Jackson says "Man he's not gonna be able to stop that man from signing the deal." Bullotta saying that is just Jackson's opinion.

Thomas asks for sidebar.

9:40AM Bullotta saying that Jackson felt that Bernard couldn't stop deal per conversation. Rosendall agrees that is what is said.

January 9th 2008, transcript of conversation with Pam Racey. Rosendall says: "....honestly Pam if I didn't think they could screw with us, I would blow them off and not even deal with it. Obviously afraid that Bernard will blow the deal.

March 5th 2008 transcript. Bernard to Rosendall: "I was pissed and I thought of it... I could have him, not blow it up, but I could have him, you know, stop it for a year, stop it for 2 years."

Discussing how Rosendall had suggested meeting in parking lot. "Yeah, yeah, I'll talk to you. Not, not, not on the phone though," said Bernard earlier in the conversation. Rosendall says this was before he worked with the FBI and he felt that Bernard was saying his office might be bugged so he didn't want to be caught on tape.

Discussion between Racey and Rosendall about why Kwame wouldn't get involved in agreement dispute

Racey: "Yeah but wouldn't Kwame say something, have something to say about it?" Rosendall says this is about agreement dispute. Or does he get into it."

Rosendall: "He doesn't get involved with it." Rosendall says Kwame wasn't involved with that agreement between Jackson and Bernard. Bullotta says Rosendall had no reason to think the mayor knew the details of that agreement. No says Rosendall.

December 20th 2007 after parking lot meeting.

Rosendall: "i mean he wouldn't have ever been involved if it hadn't been for you?"

Bernard: "Right, right. I know...." Bullotta now discussing black Onyx invoice for $5,000. "Services rendered for minority participation and political consultation" is the invoice description. Bullotta asks if their work had been done. Not by Black Onyx says Rosendall. What about Bernard asks Bullotta. Some of it had been done by Jackson says Rosendall.

Bullotta asking about the Black Onyx invoice address. Appears it might have been Bernard's office address from that time.

Bullotta asking why Rosendall was discussing trucking waste away if Bernard didn't have a trucking company. Rosendall says this was a possibility for making more money.

Discussing much more, Harrington and Smalley which specializes in government in Lansing.

Bullotta asks if they ever threatened to blow up a deal.

No says Rosendall.

Bullotta asks if witness ever felt he had to give them a case of Cristal champagne of give them money in gum wrappers. No says Rosendall.

Bullotta asks if Rosendall ever felt the Lansing consultants wanted to be paid into girlfriends' accounts. No says Rosendall.

Bullotta asks if Rosendall avoided Bernard. Rosendall says he did.

Bullotta asking why Rosendall didn't just tell Bernard that he couldn't do deals with him because he was mayor's fathers. Why didn't he blow him off.

Rosendall says he didn't want him to kill the deal.

Rosendall would have made $2 million if the deal went through and put a couple of hundred thousand of his own funds into the deal.

$3.8 million would have been the cut for Bernard and Olumba- more than Rosendall stood to gain.

Bullotta sks what work they did to gain that.

"I don't know," says Rosendall.

Rosendall says he did lots of work on the deal: dealing with DWSD, fund-raisers.

Rosendall agrees that the mon ey he paid Bernard was out of his personal account.

Rosendall says he would never have worked with Bernard had the mayor not told him to.

10:00AM Shea cross examines again.

Rosendall agrees that Bernard remained involved in the Synagro deal even after he passed it over to Jackson.

Shea says if Jackson wanted to cut a deal with Bernard to give him 75%, that's up to Jackson and has nothing to do with Rosendall. Rosendall agrees.

Shea says if Jackson thought it was worth splitting it 50/50 with Bernard because he brought him to the table, that was up to Jackson himself. Yes says Rosendall.

Shea asking about the taking of champagne to consultants in Lansing. Shea asks if he ever gave the Lansing consultants Christmas gifts. No says Rosendall.

Shea asks if Rosendall ever strung along the consultants in Lansing telling them he was working on an agreement for them.

Shea asks if Olumba did not have a business consulting practice. I don't know says Rosendall. Agrees that he doesn't know what skills she had in conjunction with that.

Shea says that Bernard had clients with trucking interests. Rosendall agrees and that Bernard might have meant that he was partnering with someone who already had a trucking business.

Rosendall agrees that minority participation was a legitimate issue to be discussed.

Shea discussing Bernard's revenues in 2007. Shea saying that Bernard talked at the Pancake House about creditors. I believe so says Rosendall. Rosendall agrees that he never saw Bernard's books and didn't know what the extent of his debts were.

Bullotta asking him about intercepting calls between Olumba and Bernard discussing a company that has trucks such as John Francis and John Ronco's company Capital Waste to transport sludge. thought about putting it in someone else's name- Daniel Ferguson, Ayanna Kilpatrick's husband. Beeckman says this was a topic discussed in that conversation. Beeckman says he doesn't know that that ever came to fruition.

Between 2002 and 2008, Capital Waste paid Bernard a monthly of $5,000 totaling $222,000. Playing a recording of a phone call. Between Olumba and Bernard. Olumba discussing about how she should invoice Synagro.

Towards the end of the call, "I just hung up about 20 minutes ago. He's on this...", says Bernard talking about Rosendall. "All I had to do was say pull the plug on it," says Bernard. "And he was like 'Oh Hell no' and he knows Rayford don't have the juice," says Olumba.

Bullotta asks to play the recording again.

Looking at 2007 deposit into Maestro account: $429,966.25. In December 7th 2007, $5,000 from Capital Waste. November 6th, there was another Capital Waste deposit for $5,000. December 14th, $7,500 from Wayne Company owned by Mike Wayne. December 21st 2007, $25,000 from Kilpatrick for Mayor.

Bullotta asks if Beeckman knows that Bernard worked for Kilpatrick for Mayor. Beeckman says that Bernard got a lot of checks from them but doesn't know what he did.

Summary of Net Cash Withdawals for Bernard Kilpatrick in December 2007 for more than $133,000. Withdrawals: December 4th for $100, December 10th for $300, December 11th for $300 at Greektown Casino, December 11th for an additional $100 at Greektown, December 12th for $140, December 21st for $600. December 24th for $1500 at Greektown, December 24th for $600 at Greektown Casino, December 24th for $400, December 26th for $417 and $208 at a Windsor Casino.

10:25AM Judge calls for 20 minute break.

10:49AM Judge Edmunds re-enters courtroom.

Bullotta continues with Beeckman about March 2008 recorded conversation where Bernard says he would stop the deal for one or two years.

January 31st 2008 recorded conversation between Bernard and Olumba.

At this point, Rosendall is cooperating. Wiretaps were in place and Rosendall was coming to Detroit once a week to make consensual recordings with various people.

"This is so so screwed. i am so close to going to my man and telling him to kill it..." Bernard.

Olumba talks about deal being rebid and a company called Waste Management come in.

"...they they so fu*&^d up with this... I'm going to do a couple of things... He don't want to talk to me no more. I think I scared him," Bernard talking about JR, James Rosendall.

"....he's full of sh%t...I'm almost gonna test out Victor and try something..." says Bernard. Victor Mercado would have to approve Synagro deal.

Talking about Francis and Ronoc from Capital Waste trucking.

"You just be the minority on the deal, 40% or something," says Bernard to Olumba.

Bullotta asking about Pancake House discussion about trucks. Bernard and Olumba talking to Rosendall.

Ayanna's husband, originally Daniel Lyton who changed his name to Daniel Ferguson. The company would be in Daniel Ferguson's name but with someone else's trucks.

"...I'm so close to saying fuc&* them..," says Bernard.

Olumba talking about even "a Tony" coming in. Tony Soave had a waste business that he later sold to Waste Management.

Looks like Rosendall had legitimate reason to fear his deal getting killed.

Looking at Black Onyx invoice. Lists an address on East Jefferson in Karl Kado's building.

Shea says that Olumba would run the company that had the labor. Yes says Beeckman.

"I don't think they ever wrote it down anywhere," says Beeckman about actually formalizing the trucking company plans.

Beeckman agrees that having a minority company might have been one way to satisfy the requirements of the city.

11:15AM Jim Thomas, Kwame's lawyer, cross examines.

Thomas asking about the talk of blowing up the Synagro contract. Approaches Beeckman with a document to refresh his memory of the contract number. It was contract 762.

Talking about how contract was first a Minergy contract with the city.

Looking at the very last page of the Synagro document. It's a Resolution for Corporate Authority by Synagro.. Drawn up by Alvin Thomas, in-house counsel for Synagro. They were going to do business with Detroit as early as September 2006. Executed on July 17th 2007 and authorizes parties to negotiate contract with the city.

Beeckman lets Thomas know that the jury has a question for him.

Looking at city acknowledgement of receipt of the contract by Victor Mercado on July 23rd 2007.

Thomas now introduces an amended 762 contract- this is the contract to build the plant to deal with waste disposal.

Thomas says this document represents the trail of information that ends in ultimate approval on November 28th 2007.

Daryl Latimer also has to sign off says Thomas. Beeckman agrees. Also signed off by budget, grant, finance, corporation counsel and Audrey Jackson in Purchasing. City Council approved on November 20th 2007.

Thomas says that the mayor by charter has 7 days to weigh in on whether or not to approve a contract. Beeckman agrees that the contract itself is a done deal b y November 28th 2007.

Thomas asks how Kwame could blow up the deal if it's been approved. Beeckman says there are the permits that were needed and he could have talked to Amru Meah about holding them.

Beeckman says he doesn't have a text message on Synagro where Kwame might be saying something on permits.

Beeckman says he doesn't think it's ludicrous at all to think that Kwame would hold up a deal for his father.

Thomas and Beeckman talking over each other.

Beeckman says that Rosendall listened to what Bernard said and reasonably interpreted it as a threat to his contract.

11:30AM Bullotta redirects and asks when text message evidence ended. Beeckman says the texts were between 2002 and 2005. Bullotta says so unless he was sending a text to wire tap, FBI wouldn't get it. Beeckman agrees.

Beeckman agrees it's possible that there were Kwame text messages about blowing up the deal out there that weren't intercepted.

Beeckman says there were other instances of text messages to blow up other deals. Beeckman says there was one in particular with Gary Torgo. Ferguson had texted Kwame about Torgo and got Kwame's agreement to deny call back on building permits.

Beeckman says if building permits are late, that's a great expense for company. Beeckman says that ultimately the city did rescind the contract when it found out about the investigation.

November 27th 2007 between Rosendall and Jackson. "So the mayor has signed off then," asks Rosendall. Jackson told him he has and it's time to take care of "BK." Bullotta shows that the official approval date on the contract is November 28th 2007 and that all the people who signed off on the contract work for the mayor.

Looking at summary of December 2007 deposits into Maestro account. Talking about Mayor for Kilpatrick deposit on the 21st for $25,000. Bullotta asks if there was a mayoral campaign in 2006, 2007 or 2008. Beeckman says no.

More juror questions.

11:41AM Thomas does more cross.

Beeckman agrees that Kwame's phone wasn't wiretapped. Also agrees that if he called someone who was wiretapped, then he would be recorded.

Thomas asks if on Bernard's wire tapped conversations with Kwame there was any reference to the Synagro contract. Beeckman says there was not.

Back to the November 27th 2007 conversation between Rosendall and Jackson. Thomas says there was a stamp used by City Council for the mayor's approval. Thomas says something about City Council having a stamp they could use if they didn't foresee any opposition from the mayor. Beeckman says he doesn't know about that.

Looking at record on the voting on the Syngagro contract by city Council. It was a 5 to 4 decision. Looks like there is a Kilpatrick signature stamp on the bottom for November 20th. Thomas says that if the mayor wanted to oppose the stamp, he had 7 days to do so. Beeckman says yes.

Beeckman says it's still impossible to says that the contract could not still be interfered with.

Thomas says that the only delay is that Joanne Watson who held on to it and took it to Treasurer's office. Watson voted against the Synagro contract.

11:50AM Shea does more cross.

Beeckman agrees it may not be unusual for someone to do some campaign work on a year there are no campaigns.

11:51AM Bullotta redirects. Bullotta asks about period that City Council members can change their minds. Beeckman says that is about a week. He says he knows that because from wire taps Jackson and Rosendall were worried that Conyers would change her mind after being bribed.

Bullotta asks about any phone calls involving Kwame were intercepted about setting up a meeting.

Beeckman says he intercepted calls between Bernard and Kwame.

Bullotta asks about veiled language.

11:50AM Discussing when Beeckman left a business card for former mayoral aide Mike Tardif. After this, November 15th 2007, a call between Kwame and Bernard was intercepted.

Kwame is heading somewhere. The recording is being differed to another time because there is no transcript and no one seems to be able to understand.

11:57AM Thomas. Again.

Going back to contract approval on November 28th 2007. Thomas says it's 8 days after city Council approval. Yes says Beeckman.

11:58AM Shea. Again.

11:59AM Judge calls for a 5 minute break.

12:10PM Court back in session. New witness should be making his way to the stand. There has been the sighting of an older gentleman hanging around the courtroom door.

US Attorney Eric Doeh questions. Witness takes the stand.

Witness is Doug Dalgleish. In 2002, the witness was employed at Dalgleish Cadillac on Cass Ave in Detroit. At that time, he was the General Manager. It was a franchise GM Cadillac dealership.

In 2000, witness was aware of Kwame Kilpatrick when he leased a Cadillac Deville.

A check made out to dealership for $2,000. Made out on March 2nd 2000 from the Kilpatrick Civic Fund account to Dalgleish Cadillac. Signed by Christine Beatty and Kwame Kilpatrick. Witness says this is start up fees on a lease. Dalgleish thinks term of lease was 36 months. Witness not sure he knew what Civic Fund was at that time.

Looking at the lease- it's a $44,000 car. Monthly payment was $728.87.

In 2009, Kilpatrick leased a red 2009 Cadillac Escalade. Witness looking at the bill of sale on the Escalade.

Thomas asks for a sidebar.

Witness says the lease term on the Escalade was 24 months. Enterprise was the leasing company that leased the car to Kilpatrick. Purchase date is February 12th 2009. Dalgleish says he received $9,000 in cash from Kwame for the Escalade.

Doeh asks about an evening, February 23rd 2009, when Kilpatrick came into the dealership.

Kwame came into dealership in February 2009. Brought in some of the required funds for the Escalade. Clerical staff was off so the witness wrote up the receipt.

12:30PM Dalgleish says Kwame had $9,000 in cash and a cashier's check for $4,000. Looking at the receipt for a total of $13,000 for Kwame Kilpatrick for that evening.

Dalgleish says the $9,000 had 79 $100 bills.

There was another cashier's check for $16,000. Then another cashier's check for $6,458.90.

Witness looking at check that dealership wrote to enterprise towards the lease of the Escalade. Total Kilpatrick pre-payment on lease was $35,458.86. Looking at $16,000 cashier's check. Dated February 12th 2009.

Looking at internal receipt of the dealership for $16,000.

Here is the cashier's check for $6,458.90. Dated February 19th 2009.

Looking at internal dealership receipt for the $6,458.90 check.

Looking at cashier's check for $4,000.

All these checks and cash add up to $35,458.96.

Doeh asking about Cadillac Escalade's extras. Witness says there were custom tires and wheels as well as chrome accessories- tow hooks and vents.

Looking at IRS form about reporting when more than $10,000 in cash has been received. The identity of individual listed as Kwame Kilpatrick. Reflects the $9,000 received in cash and lists 2 cashier's checks: $4,000 and $6,458.90.

Witness looking at requirement to send to customer notice that they have done a reporting to the IRS. Letter on December 31st 2009 to Kilpatrick that reflected $19,459.00 from the dates.

Looking at Kwame's Allstate insurance form.

12:40PM Jim Thomas cross examines.

Looking at the $2,000 check from the Kilpatrick Civic fund in March 2000. Dalgleish says they took the check and it was not returned.

Thomas asking witness if he knew what purpose the car was being used for- personal or business. Witness says he doesn't know.

Witness says there is a discount to paying a lease upfront rather than monthly. Witness says this is done about 15% to 20% of the time.

Looking at the dealership receipt for $9,000 in cash and $4,000 cashier's check.

Looking at the $35,458 total of lease pre-payments by Kilpatrick.

Looking at $16,000 cashier's check which lists Kilpatrick as the remitter.

Thomas says you didn't inquire where this money came from. Correct says witness.

Nothing suspicious about cashier's checks. Correct says witness.

Thomas asks if witness knows what Kilpatrick was doing between getting out of jail and giving checks. No says witness.

Thomas asks if he knows that Kilpatrick had signed a large contract with Compuware. No says witness.

Thomas asks if he knows if the cash was a gift. No says the witness.

12:50PM Looking at IRS form declaring the more than $19,000 from Kwame that was paid to the dealership. Doesn't include the $16,000 cashier's check. looks like it was prepared on February 26th 2009.

"The only green cash," says witness about receiving the $9,000 versus the cashier's checks.

Cashier's check from National City for $4,000 dated February 23rd 2009. Remitter on the check is Carolyn C. Kilpatrick. So drawn from Kwame's mother's account.

Looking at letter to Kwame from dealership on December 31st 2009, about 10 months after transaction. Witness says they were required to put these letters together by the end of the year.

Witness says he is not aware of Kilpatrick contacting dealership and or complaining about disclosure of that information.

On IRS form, there is a line for "suspicious transaction."

The box is not checked when declaring the amount paid by Kwame.

"People from all walks of life can buy a Cadillac," says Thomas. Witness says yes.

Thomas for someone to do an add on is commonly done. Witness says correct.

12:58PM Eric Doeh redirects.

Discussing leasee on 2000 transaction. Lists Kwame Kilpatrick as the leasee on the Cadillac Deville. Looking at the Kilpatrick civic Fund check again for $2,000.

Doeh brings up the fact that 85% of the population don't prepay full amount of their leases.

Witness and jurors dismissed. Court resumes tomorrow at 9AM.

About the author

Alexandra Harland is a Princeton undergrad and has a masters degree in International affairs with Columbia. A Montreal native, she worked with the Daily Telegraph newspaper for a few years before transitioning to TV, when she worked at ABC News with Peter Jennings. Alexandra has also worked in newsrooms in both Detroit and Boston.

Copyright 2013 by ClickOnDetroit.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments

The views expressed below are not those of Click On Detroit, WDIV, or its affiliated companies. By clicking on "Post," you acknowledge that you have read the Terms of Service and your comment is in compliance with such terms. Readers, please help keep this discussion respectful and on topic by flagging comments that are offensive or inappropriate (hover over the commenter's name and you'll see the flag option appear on right side of that line). And remember, respect goes both ways: Tolerance of others' opinions is important in a free discourse. If you're easily offended by strong opinions, you might skip reading comments entirely.